Question: If inflation is too high, the RBA will __________ (increase /
decrease) its cash rate target. If ...

If inflation is too high, the RBA will __________ (increase /
decrease) its cash rate target. If the actual cash rate remains
below the target, the RBA can intervene via open market
_____________ (purchases / sales] of bonds. The yield curve is
likely to shift __________ (up / down), especially at its
___________ (short / long) end. The impact on the long end of the
yield curve can be strengthened by convincing market participants
that the new cash rate target will be somewhat ____________
(temporary / permanent). The described change in nominal interest
rates is also affecting the real interest rate if prices are
___________ (somewhat sticky / totally flexible). The change in
real interest rates will cause businesses and households to
____________ (cut back / increase) their spendings and thus dampen
inflation.